BILL ANALYSIS



C.S.H.B. 1342
By: Yarbrough
4-21-95
Committee Report (Substituted)


BACKGROUND

Over the past few years,  establishments which provide adult
entertainment (totally nude) are moving into residential
neighborhoods. Many of these establishments were previously
licensed by the TABC. However, due to violations and other factors 
many of these establishments were going to be denied renewal of
their license or permit.  To remain in business, they became
totally nude, and became "bring your own" alcohol establishments,
that do not have to provide background information, required to
apply for a license. They also do not have to follow the same
guidelines that permitted or licensed establishments are required
to adhere to under the Texas Alcoholic Beverage Code. Further
complicating things is that  there is no control over how much an
individual consumes since the individual brings his own. This type
of atmosphere has proven to provide for an unsafe environment  both
inside and outside of these establishments.

PURPOSE

CSHB 1342 establishes an Exhibitor's Permit, as well as the fees,
restrictions and distance requirements  for establishments that
provide totally nude entertainment.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 11.11(a), Alcoholic Beverage Code. 
Provides that certain permit holders must file a surety bond of
$5,000 to insure applicant's conformance with alcoholic beverage
law.  

SECTION 2.  Amends Section 11.39(a), Alcoholic Beverage Code. 
Requires applicants for exhibitor's permit to publish notice of
application in county in which the place of business is located.  

SECTION 3.  Amends Section 11.391, Alcoholic Beverage Code, to
require notice by sign in a specific time frame, the proposed hours
of operation of the premises.  The sign must be clearly visible
from the street.  If it is a sexually oriented business, notice
must also be filed upon renewal, again within a specific time
frame.  Allows the commission to deny an application if applicant
fails to post notice.  Defines "business day".  

SECTION 4.     Amends Subtitle A, Title 3, Alcoholic Beverage Code,
by adding Chapter 54, EXHIBITOR'S PERMIT;

Sec. 54.001. Definitions

Sec. 54.002. Defines authorized activity of an exhibitor's permit
and when a person may allow a person to possess or consume
alcoholic beverages on the premises.  

Sec. 54.003. Annual state fee for an exhibitor's permit is $3,000.

Sec. 54.004. Permit  required to conduct activities, and penalty
for violation is a third degree felony.

Sec. 54.005. Sets distance requirements of 3,000 feet from church,
or house of  worship, public or private school, playground, playing
field, or park , day care center, adult care facility, hospital or
another permitted premises.

Sec. 54.006. Restricts entry by persons 18 years or younger. 
Violation of  this section is a misdemeanor, punishable by a fine
of not less than $100 or more than $500.  Subsequent violations
subject violator to fine of $500 and not more than $1,000 and by
confinement in jail for not more than one year, or by both.

SECTION 5.  Effective Date:  September 1, 1995.  Changes in law
apply only to applications for or renewals on or after effective
date.

SECTION 6.  Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute added provisions requiring the posting of a conduct
surety bond, and it also added procedures and requirements for
publishing and posting of notice for application and renewal of
permits for sexually oriented businesses.  The original did not
contain this language.   

SUMMARY OF COMMITTEE ACTION

HB 1342 was heard in a Public Hearing on April 11, 1995.  The Chair
laid out HB 1342 and recognized the author Rep. Yarbrough to
explain the bill.  Rep. Kubiak offered a committee amendment , and
moved adoption of committee amendment #1.  There was no objection. 
The Chair recognized the following persons to testify in favor of
the bill:
     Mr. Michael White, Greater Houston Partnership;
     Mr. Gary Freeman, Constable, Harris County Constable, Pct. 2;
The Chair recognized the following persons to testify against the
bill:
     Mr. Steven H. Swander, Attorney, Tx. Entertainment Assn.;
The Chair recognized members for questions.  The Chair recognized
Rep. Yarbrough to close.  HB 1342 was left pending in committee. 
HB 1342 was considered in a Formal Meeting on April 21, 1995.  The
Chair laid out HB 1342 which was pending in committee.  There was
no objection.  Rep. Pickett offered a complete committee substitute
and moved that the full committee adopt CSHB 1342.  There was no
objection.  Rep. Yarbrough moved that the full committee adopt HB
1342 as substituted and that it be reported favorably to the full
House with the recommendation that it do pass and be printed.  The
motion prevailed by the following vote:  AYES: 8, NAYS: 0, ABSENT:
1.